CBI calls for more companies to use digital technology

According to the CBI – Confederation of British Industry – the UK needs ‘more companies skilled to find and adopt available technologies and management best practices known to improve productivity and pay’

In particular, the use of cloud computing, mobile technology, e-purchasing, cybersecurity and on-line procurement could result in a £100 billion boost to the country’s productivity levels

“The gains made from computerisation of business models and processes have been about 10 times as large as the direct investments in computer hardware itself”

Somehow, they also calculate that ‘the embracing of technology could reduce inequality by 5%’, whatever that means

Then, out of the blue, the CBI claim UK businesses are years behind their Danish counterparts when it comes to using computer systems to facilitate e-purchasing, ERP (Enterprise Resource Planning) and CRM (Customer Relationship Management) – a fact which might not send too many shockwaves through too many boardrooms

More importantly, they highlight that the majority (69%) of UK firms are at the lower end of the productivity spectrum – comparable figures for France and Germany are 65% and 60%

Carolyn Fairbairn, the CBI’s Director-General, says: “While the eyes of the business world can often be on the next big thing in cutting-edge technology, too many firms are missing out on what’s right under their nose”

“Failing to adopt to the nuts and bolts technologies of today is leaving a yawning gap in productivity and pay between businesses”

“In too many areas of diffusion, we struggle against our international competitors, with more workers being employed by less productive firms here in the UK than in France and Germany”